Embracing a More Sustainable Future: The Necessary Journey Towards a Resilient Canada
Rob Wesseling, President & CEO at Co-operators emphasizes the importance of collaboration, proactive insurance models, and global advocacy to tackle complex challenges like climate change. With a focus on resilience, sustainability, and innovative partnerships, organizations can shape a more secure and sustainable future.
The most resilient ecosystem is a diverse one – one that is strengthened by the collective adaptability of many species thriving and competing together to face a complexity of challenges. At Co-operators, and across the cooperative and mutuals ecosystem, we are propelled by the belief that through co-operation and working across differences, we can develop meaningful solutions to the complex global challenges we face.
Today, our society is marked by climate change and its increasing impacts, and by geopolitical unrest and by the rising costs of living, just to name a few. In these times of complexity, the need to collaborate for long-term resilience has never been more urgent. These challenges strain our resources and amplify our vulnerabilities, threatening the financial security of Canadians and our communities, and underscoring the imperative for innovative solutions and sustainable strategies that address both the risks of today, and those of tomorrow.
The decisions we make today have a profound impact on tomorrow. As a 2024 Clean50 honouree, I am proud to share insights from our transformative journey, decades in the making, marked by our unwavering commitment to our vision of being a catalyst for a resilient and sustainable society.
An Expanded Vision of Protection and Prevention
Historically, the role of the insurer has been focused on providing protection in the aftermath of unforeseen events. We aim to change this by embracing what we see as a necessary shift to a business model that emphasizes both protection and prevention. This is reflective of our commitment to safeguard our clients, while ensuring we are proactive about addressing the root causes of risk.
A key way to achieve this shift is to evolve insurance products to support resilient rebuilding after major losses occur – for example, through resilience-enhanced home insurance.
In this model, if a roof needs replacing, claim payouts should seek to empower homeowners to install a new roof that is wind, hail, and fire resistant. Rebuilding with resilience is a virtuous circle: loss and damage is decreased over time, leading to a more sustainable and affordable insurance model.
Going beyond insurance, there is also opportunity to explore new business models and acquisitions that can expand the types of solutions insurers offer Canadians to further strengthen the resilience of Canadians and our communities.
“Rebuilding with resilience is a virtuous circle: loss and damage is decreased over time, leading to a more sustainable and affordable insurance model”
–Rob Wesseling
Global Advocacy and Collaborative Efforts
Commitments to resilience and sustainability should extend beyond one’s organization and even country. On the global stage, this includes advocating for policies and practices that promote environmental stewardship and risk reduction. As an Advisory Board Member of the United Nations Disaster Risk Reduction-convened Investment Advisory Board, I have had the opportunity to influence and contribute to global strategies aimed at enhancing disaster resilience and promoting sustainable development.
Critical to this work is ensuring there is sufficient capital directed to the necessary transition to a more sustainable and resilient economy. Strategically allocating assets is vital to both mitigate risk and to leverage the strength of investments to further climate solutions.
One example of this is the UN-convened Net-Zero Asset Owner’s Alliance (NZAOA). The NZAOA is a collective commitment to achieving net-zero emissions in invested assets by no later than 2050. Co-operators was the first Canadian insurer to join the Alliance, and today, there are 88 members from across the globe.
Another way to strongly represent a commitment to sustainability is to consider the physical embodiment of an organization’s values and vision—your offices. Seeking to align with and achieve sustainability certifications like LEED Gold, Boma Best and Zero Carbon Building Design demonstrate your commitment to sustainability within your design, while certifications like WELL Platinum demonstrate a design that contributes to the well-being of your employees. Considering sustainability and wellness in buildings and other physical embodiments of an organization demonstrates that it is possible to create compelling workspaces that attract talented people while honouring sustainability commitments.
“Strategically allocating assets is vital to both mitigate risk and to leverage the strength of investments to further climate solutions”
-Rob Wesseling
Collaboration: The Keystone of Our Approach
As I’ve said, the journey of sustainability and the work of resilience cannot be accomplished alone. We need to collaborate across sectors, industries, and communities. Our journey thus far has demonstrated that meaningful progress is achieved through partnerships and shared visions.
Through collaboration and leveraging collective expertise, we can drive systemic change and create impactful solutions. For example, the Federation of Canadian Municipalities and ICLEI Canada partner with Canadian businesses to raise awareness of innovative options to build resilient communities. Finding and tapping into partnerships is essential in addressing the complex challenges posed by climate change and ensuring that our strategies are effective.
A Commitment Embedded in Our Future
Our dedication to sustainability and resilience is not just a short-term focus but a fundamental element of our long-term strategy. Sustainability metrics are now embedded within my long-term incentive plan and those of all senior executives at Co-operators, reflecting our organization’s commitment to these principles at the highest levels of leadership. This integration ensures that our goals are both aspirational and actionable and measurable.
As we look to the future, our commitment to creating resilient, sustainable, and net-zero communities remains at the forefront of our work as a financial services organization. We are driven by the belief that our actions today will shape a better tomorrow for all Canadians. Through continued investments, product innovations, global advocacy, and collaborative partnerships, we are working to build a future where resilience and sustainability are embedded across society.
In closing, I am confident that together, we can remain steadfast in our commitment, work together with our partners, and continue to make significant strides towards the future we envision. The journey ahead is challenging, but it is also filled with opportunities for positive change. Together, we can forge a path towards a brighter, more sustainable and resilient future for generations to come.
